Post Utme Skyline University 2024 Accounting Question 31

Practice objective / multiple choice question 31 from the 2024 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2024 Accounting Objective / Multiple Choice
Question 31 POST_UTME_SKYLINE_UNIVERSITY • 2024 • ACCOUNTING • objective

A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. The proceeds from the issue of shares are used to purchase a machine for ₦500,000. The company also issues a debenture of ₦200,000 at 10% interest per annum. Prepare the journal entries for the issue of shares and the purchase of the machine.

Answer Options

A. Debit Share Capital ₦500,000, Credit Cash ₦500,000
B. Debit Share Capital ₦500,000, Credit Machine ₦500,000
C. Debit Cash ₦500,000, Credit Machine ₦500,000
Correct Answer D. Debit Share Capital ₦500,000, Credit Machine ₦500,000
Correct Answer
D
Correct Option:
Debit Share Capital ₦500,000, Credit Machine ₦500,000

About This Question

This is Post Utme Skyline University 2024 Accounting Question 31. It is one of the objective questions from the 2024 Post Utme Skyline University Accounting examination.

View More Post Utme Skyline University 2024 Accounting Questions More Post Utme Skyline University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support